- Hayes wants action, not more working groups.
- The crypto influencer and investor has a hot take on the Bitcoin Strategic Reserve.
Arthur Hayes is worried about Donald Trump.
While Bitcoin soared to $108,000 on hopes of a government stockpile, the crypto influencer and chief investment officer at Maelstrom, an investment firm, has issued a warning: the Trump administration isn’t actually taking action, it’s just forming pro-crypto task forces.
In his widely followed blog, Hayes pointed out Trump was taking swift action on other fronts, such as drastically reducing the size of the federal government and threatening to impose 25% tariffs on Canada and Mexico.
The upshot for Hayes: Bitcoin may not see its six-digit highs again for some time.
“When Trump wants to act, he acts,” Hayes wrote in his latest essay on Thursday. “My call for a retest of $70,000 to $75,000 still stands.”
Hot talking point
Looking ahead, Hayes is also pondering the details of a potential Bitcoin strategic reserve.
The idea, which has been floating around crypto for years with little hope of becoming a real thing, has become a hot talking point in the market.
This is because Trump, and many of the pro-crypto officials in his administration, have warmed to the notion.
Moreover, Senator Cynthia Lummis, a Wyoming Republican, has introduced a bill that calls for the government to commit taxpayer funds to buying 1 million Bitcoin over the next five years.
Even though the fund may never come to pass, Hayes is already worried about who will control a digital asset stockpile and which cryptocurrencies will be included. Will it just be Bitcoin? Or will altcoins also be included?
“Creating a BSR or a national stockpile of shitcoins, including the likes of Ripple, turns any cryptos held by the government into a potent political weapon,” Hayes wrote.
Political weapon
A future Democrat president could sell the coins to punish crypto-friendly voters that favoured Trump previously, he said.
He also worried about the chance of a government-led selloff — and whether the administration would care about maximizing profit, or punishing crypto-friendly voters.
“To an incoming Democrat-controlled legislature or Presidency, finding easy piles of cash to spend on goodies for their supporters is the first directive,” he said.
Hayes isn’t all that bullish on Trump’s regulation plans, either.
That’s because he thinks only large players such as Coinbase and BlackRock will have the funds to interpret laws, and potentially influence lawmakers.
“To all you builders globally who are relocating to America because of a perceived crypto-friendly administration, take heed,” he said.
Pedro Solimano is a markets correspondent based in Buenos Aires. Got a tip? Email him at psolimano@dlnews.com.
